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How Big Oil Is Forced
To Share the Wealth

As Crude Prices Rise,
Contracts Give Nations
More of the Output Pie

By

Guy Chazan

Updated Nov. 9, 2007 12:01 a.m. ET

LONDON -- Oil at $100 a barrel is a bane for fuel consumers. But it isn't entirely a boon for major oil companies, either.

The rub: The economics of the production deals governing some of the world's biggest oil fields stipulate that the higher the oil price, the less production and reserves oil companies get. Host countries such as Nigeria,...